Unaudited interim results for the six months ended 30 June 2019
Record sales pipeline and extended global offering underpins significant growth potential
TP Group (AIM: TPG), the providers of mission-critical solutions for a more secure world, today announces its unaudited interim results for the six months ended 30 June 2019.
- Revenue up 63% to £26.0m (H1 2018: £16.0m) with strong growth in both business streams.
- Operating loss £1.0m (H1 2018 operating loss: £0.7m) - the increase arising from fees and accrued earn-out payments relating to acquisitions.
- Adjusted operating profit up 161% to £2.4m (H1 2018: £0.9m) - driven by the increase in revenue, whilst continuing to invest in business development and marketing.
- Order intake up 33% to £39.3m (H1 2018: £29.5m) underpinned by a number of major contract wins and new business initiatives.
- Closing order book up 63% to £78.9m (31 December 2018: £48.3m), providing visibility of c. 94% of FY2019 revenue expectations.
- Cash balance of £9.0m (31 December 2018: £22.4m) - after acquisition of Sapienza and further investment in the business.
- Extended global reach and capability through new partnerships and an acquisition
- Acquisition of Sapienza, a leading provider of software and business services to the European space and defence sectors.
- Ongoing investment in people, products and services driving further organic growth initiatives.
- Accelerating U.S. partnerships network and other international business opportunities.
- Signed exclusive 9-year technology licensing agreement with Battelle Inc. ("Battelle") for their innovative nanotechnology.
- Significant H1 contract momentum exceeding £39 million order intake including:
- £16.9 million contract with a leading UK defence company to provide advanced packaged equipment.
- £6.4 million additional contract with Baker Hughes within the nuclear sector.
- £2.6 million of new and follow-on orders from the Ministry of Defence ("MoD").
- £1.4 million consulting agreement for the Land Environment Tactical Communication and Information Systems ("LE TacCIS") programme.
- Investment in business development initiatives underpinning sales pipeline and order book
- Built a pipeline of sales opportunities worth >£700 million across many years.
- Group order book continues to grow, with order intake more than 50% ahead of the rate of conversion to revenue.
Phil Cartmell, Chief Executive Officer of TP Group, commented:
"We are very pleased to report such a positive start to 2019. We have been very focused on investing in strengthening our core business, as well as building upon these foundations with acquisitions and partnerships to expand our propositions, customers and geographic reach.
"We have real talent within our team, and are working on exciting technical and commercial plans to build the future value of the business. The Board is confident in the Company's prospects for the rest of this year and anticipates delivering a full-year performance in line with market expectations."
- Adjusted operating profit is defined as operating loss adjusted to add back depreciation of property, plant and equipment and right-of-use assets, amortisation of intangible assets and impairment gains or losses on non-current assets, changes in fair value of contingent consideration, acquisition consideration accounted for as employment costs owing to on-going service conditions, any other acquisition-related charges, share based payment charges and non-operating costs. Non-operating costs are those items believed to be exceptional in nature by virtue of their size and or incidence. The directors of the Company believe this measure is more reflective of the underlying performance of the Group than equivalent GAAP measures. This is primarily due to the exclusion of non-cash items, such as share-based payments, impairment, depreciation and amortisation, as well as acquisition and non-operating costs. This provides shareholders and other users of the financial statements with the most representative year-on-year comparison of operating performance. This measure and the separate components remain consistent with 2018.
For further information, please contact:
TP Group plc
Phil Cartmell, Chief Executive Officer
Derren Stroud, Chief Financial Officer
Tel: 01753 285 810
Cenkos Securities plc
Mark Connelly / Stephen Keys / Callum Davidson
Tel: 020 7397 8980
Jeremy Garcia / Fiona Henson / Charlie Neish
Tel: 020 7390 0230
Notes to Editors
TP Group designs and develops advanced technologies, engineers complex equipment and systems, and provides support throughout their operational life. The Company's shares have been traded on AIM since July 2001.